Ford Motor Companys Vision Statement

Fords vision statement is people working together as a lean, global enterprise for
automotive leadership. The company also explains, automotive leadership is measured by the
satisfaction of our customers, employees, investors, dealers, suppliers and communities.
Thus, Fords vision statement has the following major points:

Global leadership

Emphasis on stakeholders

Lean business

The global leadership point of the vision statement indicates that Ford Motor Company
wants to become the top player in the international automotive market. Ford is currently the fifth
biggest in the world, and the second largest U.S.-based automotive manufacturer, behind
General Motors. In this regard, Ford still has more to work on to reach its vision statements
point of leadership. On the other hand, the vision statements emphasis on stakeholders is
achieved through Fords enhanced HR policies, as well as corporate social responsibility
strategies for employees, customers, investors and others. Fords vision statement also
highlights lean business operations, which the company already achieved through its assembly
line methods. Thus, based on its current condition, Ford Motor Company needs to work on
growing its sales to achieve global leadership and fulfill its vision statement.
Ford Motor Companys Mission Statement
Fords mission statement is One Team. One Plan. One Goal. This mission statement is
also known as the One Ford mission, which is part of the One Ford plan that was unveiled in
2008 under CEO Alan Mulallys leadership. Ford explains that the expanded form of its mission
statement is as follows:
One Team: People working together as a lean, global enterprise for automotive
leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council,
and Community Satisfaction.
One Plan: Aggressively restructure to operate profitably at the current demand and
changing model mix; Accelerate development of new products our customers want and value;
Finance our plan and improve our balance sheet; Work together effectively as one team.
One Goal: An exciting viable Ford delivering profitable growth for all.
Ford Motor Companys current mission statement is a response to the challenges it
experienced, especially in relation to market risks and the American recession and global
financial crisis that started in the late 2000s. Prior to implementing the One Ford mission
statement, the company had disparate product lines in different markets. With the One Ford
mission statement, the company now focuses on creating consistency in product and service
design and quality globally. The mission statement emphasizes teamwork to achieve synergy at
Ford. The One Plan and One Goal components also indicate that the mission statement focuses
and unifies Fords global organizational efforts to improve business performance and achieve
the global leadership point in the companys vision statement.

Mission vision statements for the organization

Our vision is to become the world's leading consumer manufacturing company for
automotive products and services. To achieve this, we, the company and all our employees are
dedicated to provide superior value to all our customers and the community with safe innovative
products and services of world class standards by being an integral part our customers' lives,
delivering consistent customer experience through innovative products and services. Through
our engineering excellence, high quality and the use of our constantly upgrading advanced
technology we limit the harm that we cause to the environment while delivering to our
customers. Our close knit working environment allows our employees, community and business
partner to share in our success, leveraging our refining assets to achieve competitive advantage
while
achieving
a
substantial
return
on
our
shareholders
investment.
Our Mission, is to serve the ever changing needs and aspirations of our customers,
provide opportunities for the potential professional growth of our employees by cultivating an
entrepreneurial culture that encourages teamwork, innovation and excellence, promoting the
best interest of all our stakeholders, fostering social relation in the communities we serve, and
ensure that everything we do safeguards a healthy environment for future generations.

COMPETITIVE PROFILE MATRIX

Ford Company
Critical Success Factors
Market Share

Weight
0.15

Rating
2

Financial Position

0.03

Product Quality

0.17

Consumer Loyalty

0.08

Sales Distribution

0.05

Global Expansion

0.20

Organizational Structure

0.08

Price Competitiveness

0.15

Customer Service

0.09

Total

1.00

WS
0.3
0
0.0
6
0.5
1
0.2
4
0.1
5
0.6
0
0.1
6
0.6
0
0.2
7
2.8
9

General
Motors
Rating WS
3
0.6
0
3
0.0
9
2
0.3
4
1
0.0
8
1
0.0
5
2
0.4
0
3
0.2
4
2
0.3
0
1
0.0
9
2.1
9

Toyota
Rating
4
4
4
4
4
4
4
3
4

WS
0.4
5
0.1
2
0.6
8
0.3
2
0.2
0
0.8
0
0.3
2
0.4
5
0.3
6
3.7

We've placed a great weight on Global expansion because within the developed world,
there are significant barriers to entry for the automobile manufacturing sector. Substantial fixed
costs, the influence of brand names upon sales, and the dealership model all hinder new
entrants. The ability of an entrant to gain market accessin the form of dealership spaceis
the most significant barrier within developed countries. In the United States and Western
Europe, entry at this time effectively requires the purchase of a company with existing market
access. In lesser developed countries, entry is limited by the ability to produce cars at a low
enough price point to be appropriately geared for local tastes. Ford in particular has had
difficulty penetrating the Indian and Chinese markets as a result of these factors in spite of joint
ventures with local firms. Entry by Ford into developing markets can also be hindered by
traditional protectionist measures such as tariffs and subsidies for indigenous companies.
In the United States market, exit has typically occurred through mergers and
acquisitions. This may, however, change dramatically in the coming months. General Motors
and Chrysler had faced large operating shortfalls, and with the rejection of GMs reorganization
plan by the government in March 2009 bankruptcy is a distinct possibility. As a result of the
government bailout of GM and Chrysler, any exit of the Big Three will be closely managed and
influenced by the US government. A highly managed and quickly executed bankruptcy for GM is
far more likely than genuine exit at this time. Because of its reliance on the U.S. and European
market, the entry threat to Ford in the medium run will continue to be from manufacturers with
existing access to these developed markets or those who can afford to purchase or merge with
such companies. The impact of exit, or government coordinated bankruptcy proceedings, is of
extreme importance to Ford, giving it a rating of 3.
The automotive company is noted for its intensive rivalry. Toyota has grown market
share largely as a result of its ability to deliver better products at lower prices, particularly for
fuel efficient smaller vehicles. And because of lower labor cost and greater efficiency, these
companies other than Ford have been able to turn a profit with smaller vehicles. Ford often
losses its money on smaller vehicles as it differentiated itself by focusing on more profitable
SUV and truck lines. And as the demand of the consumer changes, this strategy is no longer
feasible that led us to the weight that we have given Ford with regards to its consumer loyalty.
Also, reports have founded extreme differences in profit per vehicle between the big
automobile companies. Whereas Toyota makes approximately $922 profit per vehicle sold.
Estimates show that Ford lost $1,467 per vehicle in 2008; General Motors, $729, making Toyota
the leading vehicle production worldwide. Toyota sold nearly 9m vehicles compared to GM's
$8.3m. Toyota has not only been one of the most profitable producers but also the most
efficient.
Overall, Ford has managed to remain competitive in Europe by designing cars which
appeal to European tastes by increasing the quality ratings of its vehicles. This has lead to
stable market share and profits over the past 3 years and is demonstrative of Fords ability to
achieve success with smaller vehicles.
In terms of Product Quality, Supply power is a significant threat to auto companies and
manifests itself in several different ways. While the primary raw material used in vehicles have
many suppliers around the globe, intermediate parts pose a greater problem. Currently, Ford
wields a significant buying power over its parts suppliers.

In the past few years, Ford has made a concerted effort to reduce the number of
suppliers it contracts with. Since 2004, the number of parts supplier has fallen from 3300 to
1600 and the company has set a target of 750 suppliers. The goal of the process is to solidify
supplier viability during difficult economic times.
In terms of financial position, we rated it low because as seen in the balance sheet of the
company there is enough cash to compensate the business yet it remains insufficient.
In terms of Sales Distribution, Ford has been distributing to almost exactly 6 continents
yet we rated it averaged due to competitors and also threats of crisis.
About the consumer loyalty, it is coincided with the customer service wherein
discrepancies between are not that material because they are interrelated. As we have rated it,
we assessed that if the customer service is high, the consumer loyalty is also high. It is
understand that the more you treat customers effectively, the more the return on loyalty as
resulted to buying more of such company products.
Lastly the Organizational Structure, the company has a simple organizational structure in
which the whole company report on. We rated it low because this kind means that the company
may be poor on assessing the companys operations and such task are not performed because
there may be absence of segregation of duties but unlike other companies they have complex
organizational structure which helps them to perform task and evaluate the company more
effectively.
EXTERNAL FACTOR EVALUATION
Key External Factors

Weight

Ratin
g

Weighted
Score

0.15

0.60

0.15

0.30

3. The purchasing power of consumers is increasing due to end

of financial crisis in 2007 to 2010.

0.05

0.05

4. Ford is trying to sell its Volvo division but decided to wait until
GM completes the sale of its Opel division in efforts to get a
higher price for Volvo.

0.12

0.36

5. The Euro (), British pound (), and the Japanese yen ()
currencies have been valued more than the U.S. dollar ($).
Fords North America sales have dropped substantially.
However, South America and Europes sales have increased.
Threats
6. The crisis, mainly felt in the U.S., also affected Asian and
European automobile manufacturers.

0.10

0.40

0.10

0.40

7. Car companies from North America, Europe and Asia have

0.10

0.40

Opportunities
1. Establish or equip facilities to manufacture advanced
technology vehicles that would meet up certain fuel economy
and emissions standards.
2. Diversification in other related and unrelated products or
shifting to the hybrid electric engines.

implemented innovative
disinclined consumers.

marketing

strategies

to

attract

8. Major producers, including Toyota and the Big Three, offered

significant discounts across their line-ups.

0.10

0.30

9. North American consumers shifted to more fuel-efficient and

higher-quality product of European and Japanese automakers.

0.10

0.20

10. Environmental policies and allied anxiety concerning carbon

emissions have sharp sensitivity to environmental protection
worldwide and gas mileage standards
Total

0.03

0.06

1.00

3.07

The company's most important factor to be successful are " op1 and op2" as indicated
by the 0.15 weight. Also, the company is doing excellent in handling this factors, "o1", "o5", "T1"
and "T2" but they need to capitalize the factor(o3) which is the purchasing power of the
consumer which is increasing due to the end of the financial crisis that happened in US. Ergo,
the Ford company receives a 3.07 total weighted score, which is on a 1-4 scale is more than
halfway indicating that the business is doing pretty well, taking advantage of the external
opportunities and avoiding the threats facing the firm.
INTERNAL FACTOR EVALUATION MATRIX
Key Internal Factors
Strengths
1. Ford Motor is the pioneer of methods for large-scale
management of an industrial workforce and large-scale
manufacturing of cars using highly engineered manufacturing
chains typified by moving assembly lines.
2. Produce fuel efficient, smaller and higher quality models that
can attract the consumers.
3. The company has globally strong presence. It manufactures
and distributes vehicle crossways six continents.
4. By the end of 2009, Ford Motors was the third biggest
automaker in US.
5.Ford Motors distribution network is one of the biggest network
in the world.
Weaknesses
6. Revenue Decreased from 173.5 Billion in 2007 to 146.3
Billion in 2008
7. Ford is in a financial trouble
8. Market Share decreased from 17.5% to 13.8% from 2007 to
2009 due to competitors imitating the specifications and quality
of their product at a lower price
9. Ford could not penetrate the European and Asian market as
well as their competitors
10. Ford lacks availability of replacement parts for consumers.

Weight

Ratin
g

Weighted
Score

0.12

0.48

0.11

0.44

0.11

0.44

0.07

0.21

0.09

0.27

0.11

0.11

0.12
0.10

1
2

0.12
0.20

0.11

0.22

0.06

0.12

Total

1.00

2.61

The two most important factor to be successful in the company are "Ford being the
pioneer of methods for large scale managements" and "Ford being in Financial trouble". Ford is
also doing best on "Pioneer of methods for large scale managements", producing fuel efficient
models, and its globally strong presence. But the company is having problems with their
financial position, revenues and lack of replacement parts. Overall, Ford company receives 2.55
total weighted score, which on a 1-4 scale is halfway indicating that there must be a room for
improvement in store operations, strategic policies and procedures.
SWOT MATRIX
Strengths
Weaknesses
1.Ford Motor is the pioneer of 1.Revenue Decreased from
methods
for
large-scale
173.5 Billion in 2007 to
management of an industrial
146.3 Billion in 2008
workforce and large-scale 2.Ford is in a financial trouble
manufacturing of cars using 3.Market Share decreased
highly
engineered
from 17.5% to 13.8% from
manufacturing chains typified
2007 to 2009 due to
by moving assembly lines.
competitors imitating the
2.Produce fuel efficient, smaller
specifications and quality of
and higher quality models
their product at a lower
that
can
attract
the
price
consumers.
4.Ford could not penetrate the
3.The company has globally
European
and
Asian
strong
presence.
It
market as well as their
manufactures and distributes
competitors
vehicle
crossways
six 5.Ford lacks availability of
continents.
replacement
parts
for
4.By the end of 2009, Ford
consumers.
Motors was the third biggest
automaker in US.
5.Ford
Motors
distribution
network is one of the biggest
networks in the world.
Opportunities
1. Establish or equip facilities to
manufacture
advanced
technology vehicles that
would meet up certain fuel
economy and emissions
standards.
2. Diversification
in
other
related
and
unrelated
products or shifting to the
hybrid electric engines.
3. The demand rose due to the
increase purchasing power

SO
1. Ford can increase their
sales by diversification of their
products through their strong
presence in the global market.
(S3, O2)
2. Produce fuel efficient cars
with high quality that is
manufactured
through
advanced technology in a low
cost which will attract the
consumers.(S2, O1)
3. Ford as the 3rd biggest

WO
1. Manufacture a product
that is affordable, competitive
and could meet the demands
of the affected market. (W4,
O2)
2. Manufacture more motor
parts to meet the demand of
consumers.( W5, O1)
3. Ford should grab the
opportunity
of
higher
demand by diversifying their
products that can attract their

of consumers is increasing
due to end of financial crisis
in 2007 to 2010.
4. Ford is trying to sell its Volvo
division but decided to wait
until GM completes the sale
of its Opel division in efforts
to get a higher price for
Volvo.
5. The Euro (), British pound
(), and the Japanese yen
() currencies have been
valued more than the U.S.
dollar ($). Fords North
America sales have dropped
substantially.
However,
South America and Europes
sales have increased.
Threats
1. The crisis, mainly felt in the1.
U.S., also affected Asian and
European
automobile
manufacturers.
2. Car companies from North
America, Europe and Asia
have implemented innovative2.
marketing
strategies
to
attract
disinclined
consumers.
3. Major producers, including
Toyota and the Big Three,
offered significant discounts
across their line-ups.
4. North American consumers
shifted to more fuel-efficient
and higher-quality product of
European and Japanese
automakers.
5. Environmental policies and
allied anxiety concerning
carbon
emissions
have
sharp
sensitivity
to
environmental
protection
worldwide and gas mileage
standards.

automaker in U.S. should fill

the increase of demand.
-market penetration(S4, O3)

customers. (W2, O2, O3)

ST
Produce fuel efficient product,1.
ford can make a comeback
for their customers who
shifted to the European and
Japanese automakers.
(S2, T4)
Provide Fuel efficient cars that
minimize carbon emissions
which
may
harm
the
environment. (S2, T5)

WT
Minimizing operations or
distributions because it is
less risky that may affect the
revenue due to the crisis.
(W1, T1)

SPACE MATRIX
Internal Strategic Position
Financial Position(FP)
Return on Asset
Leverage
Liquidity
Working Capital
Inventory Turnover

External Strategic Position

Stability Position(SP)
Rate of inflation
Technological Changes
Price Elasticity of demand
Competitive Pressure
Barriers to entry into market

1
5
4
1
5
3.2

Competitive Position(CP)
Market share
Product quality
Customer Loyalty
Capacity Utilization
Control over suppliers and distributors

Industry Position(IP)
Growth Potential
Financial stability
Ease entry into market
Resource Utilization
Profit Potential

-1
-1
-3
-2
-1
-1.6

-3
-1
-1
-4
-5
-2.80
6
2
3
5
2
3.60

Conclusion:
Y-axis (3.20) + (-2.80) = 0.40
X-axis (-1.60) + (3.60) = 2.00
FP

5
Conservative

Aggressive

4
3
2
1

CP

IP
-5

-4

-3

-2

-1
-2

-3

Defensive

Competitive

-4
-5
SP

It gives an aggressive result which means company must focus on Market Penetration,
Market Development, and Product Development. Backward integration, Forward
Integration and Horizontal Integration

BCG MATRIX
Division

Sales
(Billions
)

%Sales

Profit
(Billions)

1.North America
2.South America
3.Europe
4.Volvo
5.Asia
6.Mazda
7.JLR
8.Financial
Services
Total

53.4
8.6
39
14.7
6.5
0
0
17

38.4
6.10
28.0
10.60
4.70
0
0
12.20

4.11
0.66
3
1.13
0.50
0
0
1.31

139.20

100%

10.71

Divisional
market share
to Industry
(rev*13.8%)
5.30
0.84
3.86
1.46
6.49
0
0
1.68

RMSP
(div mkt
share/18.8%)

Industry
Growth

28.19
4.47
20.5
7.77
34.52
0
0
8.94

-20
+13
+7
-18
-7
0
-1
-6

INTERNAL-EXTERNAL MATRIX
Strong(3.0-4.0)
Weak(1.00-1.99)

Average(2.0-2.99)

2.61

High(3.04.0)

Medium(2.0-2.99)

Low(1.0-1.99)

Grow and Build

II

III

IV

VI

VII

VIII

IX

Ford has to focus on Market Penetration, Market Development, and Product

Development. Backward integration, Forward Integration and Horizontal Integration must
be considered.

Market Penetration
o Aggressive marketing campaign
Market Development
o New branches
Product Development
o Improvements of the products and consider innovations
Backward integration
o Manufacture own parts
Forward Integration
o Focus on distributing products to similar firms
Horizontal Integration
o Alliance with the competitors

GRAND STRATEGY MATRIX

RAPID MARKET
GROWTH

WEAK
COMPETITIVE
COMPOSITION

STRONG
COMPETITIVE
COMPOSITION

SLOW MARKET
GROWTH

Evaluation:
Ford falls in the second quadrant of the grand strategy matrix as it is facing huge losses and its
competitive position has also been affected by new entrants in the automotive industry so it has
weak competitive position and the market growth is rapid. The customers expectations also
made the environment more competitive that made also a room for innovations but because of
continuous increasing prices of materials, gasoline and the fluctuation of currency, it thas been
difficult for the company to manufacture new products.

Market Penetration
o

Apply market penetration strategies

Make an aggressive marketing campaign at the same time gives an

effective form of advertisement.

Horizontal Integration
o

Alliance with the competitors

QSPM
STRATEGIC ALTERNATIVES
2
1
Apply market
penetration
strategies
globally

Key Factors
Opportunities
1. Establish or equip facilities to manufacture
advanced technology vehicles that would meet
up certain fuel economy and emissions
standards.
2. Diversification in other related and unrelated
products or shifting to the hybrid electric
engines.
3.The demand rose due to the increase
purchasing power of consumers is increasing
due to end of financial crisis in 2007 to 2010
4. Ford is trying to sell its Volvo division but
decided to wait until GM completes the sale of
its Opel division in efforts to get a higher price
for Volvo.

Alliance with the

competitors

Weight

AS

TAS

AS

TAS

0.15

0.30

0.15

0.15

0.60

0.30

0.05

0.15

0.15

0.12

0.24

0.24

5. The Euro (), British pound (), and the

Japanese yen () currencies have been
valued more than the U.S. dollar ($). Fords
North America sales have dropped
substantially. However, South America and
Europes sales have increased.
Threats

0.10

1. The crisis, mainly felt in the U.S., also

affected Asian and European automobile
manufacturers.
2. Car companies from North America, Europe
and Asia have implemented innovative
marketing strategies to attract disinclined
consumers.
3. Major producers, including Toyota and the
Big Three, offered significant discounts across
their line-ups.
4. North American consumers shifted to more
fuel-efficient and higher-quality product of
European and Japanese automakers.
5. Environmental policies and allied anxiety
concerning carbon emissions have sharp
sensitivity
to
environmental
protection
worldwide and gas mileage standards.
Total
Strengths

0.10

0.40

0.30

0.10

0.40

0.30

0.10

0.30

0.30

0.10

0.10

0.30

0.03

1. Ford Motor is the pioneer of methods for

large-scale management of an industrial
workforce and large-scale manufacturing of
cars using highly engineered manufacturing
chains typified by moving assembly lines.
2. Produce fuel efficient, smaller and higher
quality models that can attract the consumers.
3. The company has globally strong presence.
It manufactures and distributes vehicle
crossways six continents.
4. By the end of 2009, Ford Motors was the
third biggest automaker in US.
5. Ford Motors distribution network is one of
the biggest network in the world.
Weaknesses

0.12

0.11

0.44

0.11

0.11

0.44

0.11

0.07

0.09

1.Revenue Decreased from 173.5 Billion in

2007 to 146.3 Billion in 2008
2. Ford is in a financial trouble.
3.Market Share decreased from 17.5% to
13.8% from 2007 to 2009 due to competitors
imitating the specifications and quality of their
product at a lower price

0.11

0.12
0.10

1
3

1.00

0.12
0.30

4
3

0.48
0.30

4. Ford could not penetrate the European and

Asian market as well as their competitors.
5. Ford lacks availability of replacement parts
for consumers.
Total

0.11

0.06

1.00

3.79

3.04

Conclusion
Above all the matrices we have made, we suggest two alternatives but the analysis of QSPM
matrix is one of the best alternative strategy that ford can work on. Also in the grand strategy,
Ford falls at the second quadrant which entails an intensive strategy which then results to a
focus on market penetration wherein ford may make an aggressive marketing campaign at the
same time gives an effective form of advertisement.